Luxury, e-commerce to lead retail sector’s contribution to GCC economy

Special Luxury, e-commerce to lead retail sector’s contribution to GCC economy
The evolution of physical stores revolves around the idea that retailers are keen on transforming the consumers’ retail journey and assuring that the in-store visit is a rich experience by showcasing product lines and merging brand activations. (Shutterstock)
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Updated 12 March 2023

Luxury, e-commerce to lead retail sector’s contribution to GCC economy

Luxury, e-commerce to lead retail sector’s contribution to GCC economy
  • Malls have stepped away from acting as just retail outlets to become social and entertainment hubs as well

RIYADH: Luxury and e-commerce retail sub sectors are projected to lead the industry’s contribution to the Gulf Cooperation Council’s economy, according to Retail Leaders Circle Chairman Panos Linardos.

“Luxury continues to perform well and favors the in-store model, as consumers investing significantly in a product want to examine it physically before committing to purchase,” Linardos told Arab News.

“E-commerce is growing fast as customers continue their buying habits from the pandemic. Spending power among younger digital buyers, who generally enjoy the convenience of online shopping, will also contribute significantly to the growth of retail in the GCC,” the chairman added.

In addition to luxury and e-commerce, domestic and regional retailers are also contributing to the GCC economy as a hike in prices alongside supply chain disruptions in key European countries are hindering the delivery and cost-competitiveness of their export products.

Moreover, integrating physical and digital retail, conscientious consumerism, and the evolution of physical stores are three key trends in the industry that are helping propel its growth which is estimated to hit SR596 billion ($158.85 billion) by 2024.

Speaking on integrating physical and digital retail, Linardos notes that while several retailers have incorporated digital technologies to their businesses, they are yet to design the entire customer journey around digital integration.

“Artificial intelligence will help to anticipate and respond to shifting consumer demand patterns by streamlining inventory processes, increasing supply chain efficiency and tracking production, and augmented reality will make the online and physical shopping experiences more immersive, while also supporting product customization and enhance brand loyalty,” the chairman explained.

As for conscientious consumerism, this refers to the fact that consumers are becoming more aware of the impact their decisions are having on the environment and on the local communities as well.

“Transparent reporting and independent auditing of sustainability claims are going to become increasingly significant to retailers hoping to protect and grow their market share,” he disclosed.

Luxury continues to perform well and favors the in-store model, as consumers investing significantly in a product want to examine it physically before committing to purchase.

Panos Linardos, Retail Leaders Circle chairman

Meanwhile, the evolution of physical stores revolves around the idea that retailers are keen on transforming the consumers’ retail journey and assuring that the in-store visit is a rich experience by showcasing main product lines and merging brand activations and in-store technologies to substitute the conventional inventory-driven model.

“The ability of retailers to allow customers to order products from the entire product line in-store and have them delivered quickly and seamlessly reduces the need to keep large, comprehensive product inventories on-site and instead they can devote space to more creative product displays and in-store promotion activities,” Linardos emphasized.

With regards to the competitiveness in the Middle East, Linardos goes on to argue that malls in the region have stepped away from being single-minded and acting as just retail outlets to become social and entertainment hubs as well.

This is mainly attributed to the high temperatures associated with Middle Eastern countries, making it hard for consumers to enjoy the traditional “high street” retail model common in more temperate regions.

“Mall investment, especially in Saudi Arabia, continues to expand. To enhance their competitive appeal, new retail spaces should be seeking to integrate more digitally enabled, immersive experiences into their offer to attract consumers and retain loyalty,” he said.

Moving on to ways in which malls in the region can attract new consumers, it is evident that the more customized or immersive the experience is, the more likely that this is going to drive high purchase intention and diminish product returns.

“The question retailers should be asking is not ‘Shall we invest in immersive technology?’ but rather ‘How long will it be before immersive technology is a basic cost of entry?’ according to the chairman.

HIGHLIGHTS

• The end goal of the Retail Leaders Circle Summit is to provide the world’s retailers, brand owners, and suppliers with the intellectual and social capital they need in order to further prosper and succeed.

• The summit is expecting more than 4,000 attendees, 750 retail firms, 500 sector CEOs, and over 75 speakers from all around the world.

• Influential leaders, industry pioneers, innovators, investors, as well as senior policymakers are on track to partake in the event and take stock of an industry in the midst of rapid reinvention.

Retail Leaders Circle is the region’s largest and most significant meeting place for the retail and commerce industries.

The two-day event is set to kick off on Mar. 7 and is being held under the theme “Digital Economy & Purposeful Growth.”

Influential leaders, industry pioneers, innovators, investors, as well as senior policymakers are on track to partake in the event and take stock of an industry in the midst of rapid reinvention.

During the course of the event, all participants will tackle and debate on what the future holds for retail and commerce.

“Digital is making the biggest impact on the modern retail landscape, and it will be a central to the discussions at the Retail Leaders Circle MENA Summit,” Linardos highlighted.

The summit is expecting more than 4,000 attendees, 750 retail firms, 500 sector CEOs, and over 75 speakers from around the world.

The event will host thought-provoking sessions, task-force roundtables, engaging live experiences, in addition to a retail exhibition.

The retail exhibition — which will be presented by the Saudi 100 Brands initiative under the Saudi Fashion Commission — offers a portal for some of the Kingdom’s homegrown brands to showcase their offerings.

The end goal of the Retail Leaders Circle Summit is to provide the world’s retailers, brand owners, and suppliers with the intellectual and social capital they need in order to further prosper and succeed.

“The Retail Leaders Circle is the most important strategic forum for the MENA retail sector, bringing regional and global thought leaders together to examine regionally significant emerging trends and drive positive industry change,” Linardos stressed.


EVs to be at core of shift to green mobility, says UAE minister

EVs to be at core of shift to green mobility, says UAE minister
Updated 11 sec ago

EVs to be at core of shift to green mobility, says UAE minister

EVs to be at core of shift to green mobility, says UAE minister

RIYADH: Electric vehicles are set to be at the core of the shift to green mobility as reaching net-zero emissions has become a collective and urgent priority, according to the UAE’s minister of energy and infrastructure. 

Speaking at the second edition of the Electric Vehicles Innovation Summit organized at the Abu Dhabi National Exhibition Centre, Suhail bin Mohammed Al-Mazrouei said: “The EV market looks promising and offers unique investment opportunities. We invite future-thinking businesses to capitalize on these opportunities. Investing in the EV industry makes a perfect environmental and economic sense.” 

He said that the UAE is constantly offering incentives to make EVs more appealing to consumers. “To fully realize the potential of electric mobility, we are deploying a nationwide network of public and private charging stations, equipped with the latest innovative technologies to reduce charging time,” he informed. 

The three-day summit that ends on May 31 includes an extensive exhibition throughout the event. In addition, the exhibition space has been expanded, accommodating over 100 products, including vehicles and EV service providers. 

Additionally, EVIS2023 encompasses a two-day conference that has garnered significant attention, featuring more than 100 speakers and over 50 conference sessions covering a wide range of topics relevant to the current and future landscape of e-mobility. 

The summit aims to promote the transition from dependence on fossil fuels to electric mobility, which saves the planet from the environmental consequences of carbon dioxide and other emissions. 

Organized by the Abu Dhabi-based Nirvana Holding, the summit succeeded in attracting and bringing global interest to the Middle East and North Africa region, which is a promising market with significant growth and business opportunities in the coming years. 

The exhibition drew global household brands like Geely, Skywell, Tesla, BYD, Polyester, etc. More than 50 EVs worldwide are on display at the show. 

The event has also attracted global e-mobility service providers, like charging infrastructure and dealerships. 

A notable addition to this year’s edition is the Technology Park, an innovation hub showcasing the latest advancements in e-mobility. This dedicated area showcases the cutting-edge EV technologies developed by universities and technology incubators, shaping the industry’s future. 


Oil Updates — crude slips on US debt ceiling struggles

Oil Updates — crude slips on US debt ceiling struggles
Updated 30 May 2023

Oil Updates — crude slips on US debt ceiling struggles

Oil Updates — crude slips on US debt ceiling struggles

RIYADH: Oil prices fell on Tuesday, giving up earlier gains, as concerns about the viability of the US debt ceiling pact cooled the market’s risk-on sentiment and mixed messages from major producers have clouded the supply outlook ahead of their meeting this weekend. 

Brent crude futures fell 60 cents, or 0.78 percent, to $76.47 a barrel at 9:23 a.m. Saudi time, after rising by 0.5 percent earlier on Tuesday. 

US West Texas Intermediate crude dipped 37 cents to $72.30 a barrel, down 0.51 percent from Friday’s close. There was no settlement on Monday because of a US public holiday. 

Some hard-right Republican lawmakers said on Monday they might oppose a deal that would raise the debt ceiling in the US, the world’s biggest oil user, while Democratic President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy remained optimistic the deal will pass. 

Biden and McCarthy forged an agreement on the debt over the weekend, and it must pass a divided US Congress before June 5, the day the Treasury Department says the country will not be able to meet its financial obligations, which could disrupt financial markets. 

OPEC will welcome Iran’s return to oil market when sanctions lifted 

The Organization of the Petroleum Exporting Countries will welcome Iran’s full return to the oil market when sanctions are lifted, its secretary-general told the Iranian oil ministry’s news website SHANA on Monday. 

Iran is an OPEC member, although its oil exports are subject to US sanctions to curb Tehran’s nuclear program. 

Secretary-General Haitham Al-Ghais, who is visiting Tehran for the first time, added that Iran could bring on significant production volumes within a short period of time. 

“We believe that Iran is a responsible player among its family members, the countries in the OPEC group. I’m sure there will be good work together, in synchronization, to ensure that the market will remain balanced as OPEC has continued to do over the past many years,” SHANA’s website cited him as saying. 

Asked about OPEC’s voluntary production cut and its effect on oil prices, Al-Ghais said, “In OPEC ... we don’t target a certain price level. All our actions, all our decisions are made in order to have a good balance between global oil demand and global oil supply.” 

In a surprise move in early April, Saudi Arabia and other members of OPEC+, which comprises OPEC and allies including Russia, announced further oil output cuts of around 1.2 million barrels per day.  

Brazil’s Petrobras approves new commercial portfolio for natural gas 

Brazilian state-run oil company Petrobras on Monday announced a new commercial portfolio for natural gas, saying it was moving to include “diversified” deadlines, benchmarks and places of delivery to “ensure competitiveness.” 

Petroleo Brasileiro SA, as the firm is formally known, said it would resume using Henry Hub benchmark prices for gas in addition to Brent oil prices while offering distributors more options for contract deadlines and delivery locations. 

(With input from Reuters) 


Saudi Arabia’s Red Sea Global reviews strategic partnership opportunities in Egypt

Saudi Arabia’s Red Sea Global reviews strategic partnership opportunities in Egypt
Updated 30 May 2023

Saudi Arabia’s Red Sea Global reviews strategic partnership opportunities in Egypt

Saudi Arabia’s Red Sea Global reviews strategic partnership opportunities in Egypt

RIYADH: The Saudi-based Red Sea Global company held its second promotional procurement exhibition in Cairo, in cooperation with its media partner, MEED Network, and in the presence of representatives from more than 100 Egyptian companies from the private sector, the Saudi Press Agency reported on Monday.
The exhibition is the second of its kind in a series of local, regional and international introductory meetings conducted by the company, which is wholly owned by the Kingdom’s Public Investment Fund.
The event aims to establish more partnerships with the private sector to enable the delivery of the company’s growing portfolio of projects.
Ben Edwards, group head of cost, commercial and procurement at Red Sea Global, said the opportunity to present projects and opportunities available to the Egyptian market is a major strategic step for Red Sea International this year.
“To achieve the innovative approach that we seek, especially with regard to sustainability, we had to identify organizations and companies that share the same vision to establish real partnerships with them, and we met today with many future partners,” he added.
Red Sea Global is one of the companies with continuous progress in implementing projects for its “Red Sea” and “Amaala” destinations, and the twelve future projects in the company’s portfolio, SPA added.
In March, it held its first regional induction tour in Doha, where the company met with representatives from more than 100 Qatari companies.
The company has awarded contracts worth more than SR40 billion ($10.6 billion) for its “Red Sea” and “Amaala” destinations so far and this year, contracts worth SR5 billion were awarded, with an additional SR20 billion expected to be awarded before the end of the year.


Riyadh Airports CEO joins international aviation body

Riyadh Airports Co. CEO Musad Aldaood (File)
Riyadh Airports Co. CEO Musad Aldaood (File)
Updated 29 May 2023

Riyadh Airports CEO joins international aviation body

Riyadh Airports Co. CEO Musad Aldaood (File)

RIYADH: In significant global recognition of the Kingdom’s aviation sector, Riyadh Airports Co. CEO Musad Aldaood has been elected to the board of the Airports Council International, Asia-Pacific.   

This assembly of airport authorities is dedicated to improving airport operations and standards, representing their collective interests with international organizations like International Civil Aviation Organization and International Air Transport Association.  

The announcement was made during the 18th meeting of the ACI Asia-Pacific Assembly in Kobe, Japan. 

Aldaood joined leaders from airports across mainland Asia, Australasia, the Pacific Ocean islands and key North American points such as Vancouver, San Francisco and Hawaii.  

Commenting on his appointment, Aldaood said he was looking forward to working with other board members, the World Executive Committee, regional advisers, and the management team to continuously make airports a great and safe place for travelers and airport partners.   

“We will devote our expertise and efforts to improve the aviation sector, raise the aspirations and expectations, and work with relevant sectors in a joint and integrated manner to develop our work through the ACI World Governing Board, Asia-Pacific and the Middle East,” he said.  

Aldaood brings over 21 years of experience managing and operating King Khalid International Airport under the RAC.   

He also holds concurrent positions as the vice chair of the board of directors of Saudi Public Transport Co. and a board member of Altanfeethi Co., overseeing executive terminals and offices across the Kingdom’s airports.  


New shipping service added to Kingdom’s Dammam port

New shipping service added to Kingdom’s Dammam port
Updated 29 May 2023

New shipping service added to Kingdom’s Dammam port

New shipping service added to Kingdom’s Dammam port

RIYADH: Traffic at the King Abdulaziz Port in Dammam will soon ease thanks to the addition of Swiss-based Mediterranean Shipping Co.’s new service, the Saudi Press Agency reported.

The Upper Gulf Express shipping service aligns with the objectives of the National Transport and Logistics Strategy to position the Kingdom as a global logistics hub connecting three continents, the General Authority of Ports said. 

The shipping service connects Dammam with the ports of Abu Dhabi and Sharjah in the UAE as well as the Iraqi port of Umm Qasr.  

The service which is set to launch at the end of May also consolidates the position of the King Abdulaziz Port as the main port through which goods pass from all over the world. 

In January this year, the ports authority announced the launch of a new freight service at King Abdulaziz Port operated by MSC.    

The connection allows Dammam to enjoy weekly sailings to eight maritime destinations spanning the Arabian Gulf, South Asia, and Southern Africa.    

These include the ports of Khalifa bin Salman in Bahrain, Khalifa in the UAE, Qasim in Pakistan, Mundra and Hazira in India, Port Louis in Mauritius, and Durban and Coega in South Africa.    

The service started on Jan. 21 and features five vessels with an average carrying capacity exceeding 6,000 twenty-foot equivalent units.